An appraisal helps in various decision points. The seller could use the appraisal as a basis for pricing. The buyer could use it as a gauge on which to base an offer. Lenders use appraisals to know how much money to credit to their borrowers.
The important factors in a house appraisal are:
• Dwelling type - ranch, 1-story, 2-story, split-level, bi-level • Square Footage - Above grade square footage is considered, then adjustments made for finished basements • Features - design, materials used, structure type, and how it was built • Improvements made in the last 2-5 years • Comparable sales with 6-12 months • Location - type of neighborhood, amenities, zoning areas, proximity to other establishments • Age of the home • Depreciation Location is a very important factor since location does not change. Condition, of course, is a crucial factor in valuation. Upgrades or improvements to a home and property can often enhance its value. A professional appraiser should be a qualified, disinterested specialist in real estate appraisals, with expertise in your region. His or her job is to determine an estimated value by inspecting the property, reviewing the condition and updates, and weighing it against recent sales of similar size.
COMPARATIVE MARKET ANALYSIS BY A REAL ESTATE PROFESSIONAL
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